Blog Post

Setting a Realistic Marketing Budget

  • by Elaine Tibbatts
  • 28 Mar, 2025

A Smart Approach for Business Growth

Creating a realistic marketing budget is essential for businesses looking to maximise impact without overspending. Whether you're a startup or an established brand, knowing how much to invest, where to allocate funds, and how to track ROI ensures your marketing efforts deliver real results.


Why a Well-Planned Marketing Budget Matters

A well-structured budget helps you:

  • Avoid overspending while ensuring you invest enough for results
  • Focus on high-impact strategies that drive engagement and conversions
  • Track ROI effectively and adjust based on performance

 

Steps to Setting a Realistic Marketing Budget

1. Define Your Marketing Goals

Before you decide on a budget, identify what you want to achieve:

  • Increase brand awareness
  • Generate leads & new customers
  • Boost website traffic & conversions
  • Improve customer retention

Aligning your budget with clear goals ensures every pound is spent strategically.

 

2. Review Your Past Performance (If Applicable)

If you've run marketing campaigns before, analyse:

  • Which strategies brought the highest ROI?
  • Where did you overspend with little return?
  • What channels (social media, SEO, email, PPC) were most effective?

Use this data to refine your budget and focus on what works.

 

3. Determine Your Overall Marketing Spend

A general rule of thumb:

  • Small businesses typically allocate 5-10% of revenue to marketing.
  • Growth-focused businesses may invest 10-20% for more aggressive expansion. 

Your budget should reflect your business stage, industry, and goals.

 

4. Allocate Funds to the Right Channels

Distribute your budget across different marketing efforts:

  • Digital Marketing: SEO, social media ads, PPC, content marketing
  • Traditional Marketing: Print, direct mail, events, sponsorships
  • Marketing Tools & Software: CRM systems, email automation, analytics
  • Outsourcing vs. In-House: Do you need external support for expertise?

 Prioritise the channels that align with your audience and goals.


5. Plan for Flexibility & Unexpected Costs

Marketing trends shift, set aside 10-15% of your budget for:

  • Boosting high-performing campaigns
  • Testing new strategies (e.g., influencer marketing)
  • Addressing sudden industry changes

Being adaptable helps maximise opportunities without financial strain.

 

6. Track, Measure & Adjust Your Budget

Regularly review your spending and performance:

  • Monitor key metrics (conversion rates, website traffic, ROI)
  • Compare actual spending vs. budgeted amounts
  • Reallocate funds to top-performing campaigns

 A budget isn’t set in stone, adjusting based on data ensures ongoing success.

Need Help Creating a Realistic Marketing Budget?

Our FREE 90-Minute Marketing Planning Consultation will help you structure a budget that drives real results without wasting resources.

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